A heating, ventilation, and air conditioning unit helps keep the home cooler during summer and colder during winter. It also helps circulate fresh air and eliminates dust and allergens. But if the performance of the HVAC unit is not what it used to be, or you see the energy bills rising high - it’s time to consider an upgrade!
Updating or upgrading an HVAC system is considered a huge investment, which may cost an average of $7,500. However, depending on the size, type, and efficiency of the unit, the price could be as low as $5,000 or as high as $12,500. If you want to get your ductwork done, it may also add to the cost.
Average Cost of Updating an HVAC Unit
The average cost of updating an HVAC unit is $13,500, which covers air conditioning and gas furnace setup.
HVAC Update Cost by Unit Type
The HVAC unit you choose determines its cost. Here are some of the units with their approximate costs, which may vary as per the unit type -
| HVAC Unit Installation Cost | Average Cost |
| Central Air Conditioner | $6,500 - $11,800 |
| Ductless Split AC | $2, 200 - $3,900 |
| Electric Furnace | $700 - $3,500 |
| Gas Furnace | $900 - $3,800 |
| Oil Furnace | $3,400 - $8, 300 |
| Heat Pump | $2,900 - $7,500 |
| Geothermal Heat Pump | $15,000 - $38,000 |
Size of the Unit
The larger the home, the larger its HVAC unit will be to ensure sufficient heating and cooling across the home. Let’s consider the cost of air conditioners as per their size -
| AC Unit Size | Average Cost (Unit Only) |
| 1.5 Tons | $2,000 |
| 2.5 Tons | $3,000 |
| 3 Tons | $3,000 |
| 3.5 Tons | $3,500 |
Size of the Home
The average cost to update the HVAC unit also depends on the size of the home -
| Home Size | Average Cost |
| 1,000 - 1,500 Sq. Ft. | $5,000 - $8,000 |
| 1,500 - 2,000 Sq. Ft. | $6,000 - $10,000 |
| 2,000 - 3,000 Sq. Ft. | $7,000 - $12,000 |
| 3000+ Sq. Ft. | $10,000 - $15,000+ |
Cost by Add-Ons
The cost of updating the HVAC unit may also vary depending on the add-on you want to incorporate.
| Add-On | Cost |
| Whole-House Air Purifier | $400 - $4,000 |
| Whole-House Dehumidifier | $1,500 - $3,500 |
| Whole-House Humidifier | $400 - $1,200 |
Factors to Be Considered When Calculating HVAC Unit Update Cost
Labor and Installation
Installing an HVAC system includes removing and replacing ductwork. On average, the labor cost for HVAC installation is about $1,500. If you have had an HVAC system before, you may expect to pay more. The cost of installing ductwork usually ranges from $1 to $13 per linear foot, with an average total cost of around $3,500.
SEER Ratings
More expensive HVAC systems usually offer better energy efficiency, which is measured by the SEER (Seasonal Energy Efficiency Ratio) rating. The energy efficiency you need will be determined by the type of system, the size of your home, etc.
Brand
The cost of the HVAC also depends on the brand. Some brands offer more energy-efficient units, which may cost more. Be sure to check and explore more details before purchasing or finalizing the new unit. However, the average cost of an HVAC unit is around $4,700.
Condition of the Ductwork
The condition of the ductwork can affect the HVAC update costs. If ducts are well-sized, sealed, and insulated, you may save some extra dollars. However, installing new ductwork can be costly. Older homes with outdated systems often need full reconfiguration to meet modern standards and codes, which may increase the installation and labor costs.
Unit Removal and Disposal
HVAC update cost usually covers the removal and disposal cost of the old unit, which can range from $60 to $500. It’s important to ask the HVAC contractor how much these services would cost.
Insulation Installation
Though insulation is not a part of the HVAC update work, people living in older homes that are prone to drafts may want to consider it. It is important to take care of the insulation as it helps prevent thermal loss in addition to cold air infiltration. The cost of insulation may range anywhere between $1,000 and $2,100 and can help lower the heating and cooling costs by 10-15%.
When Should You Consider Replacing the HVAC Unit?
Sometimes, your HVAC gives clear signals when it needs replacing. For example - it may start making strange noises or require frequent repairs over the past couple of years. Sometimes, it may not be that obvious. For example - higher energy bills or the need to adjust the thermostat constantly may indicate that your HVAC needs immediate replacement. Also, if the unit is more than 10 years old and is not functioning optimally - you might consider updating the HVAC.
A professional inspection can help you understand when the HVAC unit needs replacement. Here are some signs that you might need to update or upgrade HVAC -
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Weak airflow from the vents.
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Unusual rattling, squealing, or grinding noise.
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Blowing warm air when cold air is needed.
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Unwanted moisture, either from leaks or increased humidity.
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The strange, musty odor from the ductwork, usually due to mold and mildew growth.
Conclusion
The cost of HVAC depends on several factors, such as the type of HVAC, its size, the size of the home, the SEER rating, etc. So, when updating your HVAC, always consider getting in touch with a professional who can help you make the right decision because HVAC is a huge investment that needs to be done mindfully.
